Russia plans military upgrade to match Nato

Russia plans to boost both conventional armed forces and nuclear forces to counter a growing threat from Nato, President Dmitry Medvedev said yesterday, raising the spectre of a military confrontation between Moscow and the west.

In a hawkish speech to Russia's top generals, Medvedev said Russia intended to upgrade the army and navy from 2011. Strategic nuclear forces would also be overhauled in an effort to guarantee the country's security.

Modernisation was necessary because of the danger posed by the transatlantic military alliance. "Attempts to expand the military infrastructure of Nato near the borders of our country are continuing," Medvedev said. "The primary task is to increase the combat readiness of our forces. They must be able to fulfil all the necessary tasks to ensure Russia's security."

Another task on Russia's agenda was to move all combat units to a state of "permanent readiness".

Medvedev's remarks come two weeks before his first meeting with Barack Obama at the G20 summit in London on 2 April. The administration has said it wants to "reset" America's troubled relations with Moscow, but has received mixed signals from the Kremlin. Russia has offered to assist the US in the transport of non-military supplies to Afghanistan. At the same time, Moscow agreed a backroom deal last month with Kyrgyzstan, which is likely to lead to the closure of the US's key military base in central Asia.

At issue is what Moscow regards as the west's creeping encroachment into Russia's backyard. Russia vehemently objects to Nato membership for Georgia and Ukraine, and bitterly opposes the deployment of the US's proposed missile defence shield in central Europe, which is currently under review.

Yesterday the Russian defence minister, Anatoly Serdyukov, said the world situation meant the "likelihood of armed conflicts and their potential danger for Russia" was rising. "The military-political situation is characterised by the US leadership's desire ... to expand its military presence and that of its allies in regions adjacent to Russia," he said.

America was trying to grab energy and mineral resources in central Asia and other post-Soviet countries on the borders with Russia, he complained, adding that Washington was "actively supporting processes aimed at ousting Russia from the area of its traditional interests".

Later, military officials announced that Russia plans to deploy intercontinental missiles fitted with multiple warheads once the strategic arms reduction treaty [Start 1] expires in December. The US secretary of state, Hillary Clinton, said a new strategic arms deal with Russia was a priority. Russia has also welcomed talks on a nuclear deal.

Last night Yevgeny Myasnikov, a Moscow defence analyst, said Russia's wishlist ahead of next month's Obama-Medvedev meeting was well-known. "Russia wants an end to the US's missile deployment in Europe, a moratorium on Nato expansion, [and] a deal on Start," he said.

He added that there were doubts as to whether Russia had enough money to modernise the crumbling Soviet-era army and navy after 2011.